Just went on to their website and read the little message they put up and it seems that they have caught on to people exploiting their services. Some advice before people continue to buy faulty items from ebay.
Hopefully their policies don't change too much when they decide to come back.
being considerate :)...Original Sony Message:
***Dear Continuous Players, we set up this service ultimately to provide a fast, efficient and cost effective way to ensure that your experience with PlayStation 3 & PSP was as seamless and hassle free as possible. Unfortunately, some individuals have chosen to abuse this service and as a consequence we feel that we have no option but to suspend Continuous Play and postpone acceptance of new Continuous Play plans until further notice. We will of course honour existing customer's policies and look to amend the existing provision so that it is less vulnerable to exploitation. Sincere apologies